1. Community Relations and Strategic Philanthropy
CHAPTER 9
Community Relations and Strategic Philanthropy

2. Chapter Objectives To describe the community as a stakeholder
To discuss the community relations function
To distinguish between strategic philanthropy and cause-related marketing
To identify the benefits of strategic philanthropy
To explain the key factors in implementing strategic philanthropy

3. Community Stakeholders
A community includes those members of society who are aware of, concerned about, or in some way affected by the operations and output of the organization.

4. Community Stakeholders (cont.)
Issues of concern include:
Pollution of the environment
Land use
Economic advantages to the region
Discrimination
Exploitation of workers and consumers
Neighbor of choice
An organization that builds and sustains trust within the community

5. Community Relations
The organizational function dedicated to building and maintaining relationships and trust with the community

6. Responsibilities to the Community
Economic issues
Legal issues
Ethical issues
Philanthropic issues

7. Philanthropic Contributions
Philanthropy- provides four major benefits to society
Improves the quality of life and helps make communities places where people want to do business, raise families, and enjoy life
Reduces government involvement by providing assistance to stakeholders
Develops employee leadership skills
Helps create an ethical culture and the values can act as a buffer to organizational misconduct

8. Strategic Philanthropy
The synergistic use of an organization’s core competencies and resources to address key stakeholders’ interests and to achieve both organizational and social benefits

9. Strategic Philanthropy and Social Responsibility
Companies often consider philanthropy after meeting financial, legal, and ethical obligations.
Strategic philanthropy is often viewed as an investment that is tied to business strategies and implementation.
By incorporating philanthropy in strategic planning, the company can address the needs and concerns of key stakeholders.
Greater organizational accountability has led to organizational concern about performance and stakeholder accountability.

10. Implementation of Strategic Philanthropy
The implementation must have the endorsement and support of the CEO and other members of top management.
Top-level support allows organizational members and stakeholders to see the importance of the program to the company.
Companies need to find their unique method and not clone what competitors are doing.

11. Planning and Evaluating Strategic Philanthropy
Research
Organize and design
Engage
Spend